Investors are fired up for cannabis stocks this morning as the results of yesterday’s runoff elections for Georgia’s two U.S. Senate seats point to a shift to Democratic control. Why? Well, with Democratic control comes a stronger likelihood of federal-level reform of marijuana laws.
Aurora Cannabis (NYSE:ACB), Canopy Growth (NASDAQ:CGC) and Tilray (NASDAQ:TLRY) are all poised for double-digit gains, extending their increases on Tuesday.
Rev. Raphael Warnock, the senior pastor of Atlanta’s Ebenezer Baptist Church, will be the the state’s first Black senator, CNN projected early Wednesday, edging out Republican Sen. Kelly Loeffler. In the second race, still too close to call, Democrat Jon Ossoff is seeking to replace Sen. David Perdue.
With President-elect Joe Biden gearing up for his inauguration and Democrat control in the House of Representatives, winning both seats would usher in that so-called “blue wave” many talked about prior to Election Day.
Seeing Pot Stock Green in Blue Wave
So what should you do with Canopy Growth, Tilray and ACB stock here? Well, the bull thesis on cannabis stocks was already gaining ground. If you add in political support, industry consolidation and Covid-19 recovery, a Democratic victory in Georgia only makes that thesis stronger.
Keep an eye on the news and do your own research. And if Washington does ease up on cannabis, take a look at pot-stock exchange-traded fund ETFMG Alternative Harvest ETF (NYSEARCA:MJ), which holds all three of the above-mentioned names among its top 10 holdings. On an individual basis, here are six marijuana stocks you should be watching.
On the date of publication, Robert Lakin did not have (either directly or indirectly) any positions in the securities mentioned in this article.
InvestorPlace contributor Robert Lakin is a veteran financial writer and editor, following fintech, agtech and property tech startups.
